ACWA Power has announced the financial close of its Al Shuaibah 1 and Al Shuaibah 2 Saudia Arabian solar projects, which have a combined capacity of over 2.6GW.
Situated in Al Shuaibah in the Makkah Province, the Al Shuaibah PV 1 and Al Shuaibah PV 2 will have a capacity of 600MW and 2031MW respectively.
The US$1.63bn senior debt financing for this plant includes a US$450m, Saudi riyal denominated loan from the National Development Fund on behalf of the National Infrastructure Fund (Under Establishment), as well as US$1.18bn, US-dollar denominated commercial facility from a consortium of local, regional and international banks (Bank Saudi Fransi, First Abu Dhabi Bank, Mizuho Bank, Riyad Bank, Saudi National Bank, Standard Chartered Bank and Saudi Investment Bank).
The total investment in the plant amounts to US$2.37 billion, and commercial operations will commence in 2025. Saudi Power Procurement Company (SPPC) is the procurer and the offtaker for the projects.
ACWA Power owns 35.01% of the projects, with Badeel, a subsidiary of Public Investment Fund (PIF), holding 34.99% and Saudi Aramco Power Company (SAPCO) holding the remaining 30%.
Marco Arcelli, CEO of ACWA Power, said: “Securing financing for this groundbreaking project marks a significant step towards achieving Saudi Arabia’s clean energy goals, in alignment with the National Renewable Energy Program, which aims to generate 50% of electricity from renewable sources by 2030.”